CME update: hog futures close mostly higher as traders expect continued strength
US lean hog futures settled up on 29 January, finding support rom firm pork prices and expectations for continued strength this spring.
1 February 2021
3 minute read
By: Reuters reports that April lean hog futures settled up 0.275 cent at 76.650 cents per pound, hovering just below a life-of-contract high set on 26 January at 77.600 cents.
Wholesale pork prices rose, with the US pork carcass value rising $1.87 at $85.36 per cwt on Friday afternoon, according to the USDA.
The CME's thinly traded pork cut-out futures closed higher, with the April contract settling up 1.000 cent at 84.800 cents per pound, reflecting expectations for pork prices to remain firm.
"It will be hard to break the hog market down in those spring and summer months, if the carcass (value) is strong," said Dan Norcini, an independent livestock trader.
